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  • Advantages of A Partnership

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    April Naida
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    A partnership has several advantages over a sole proprietorship including being easy and inexpensive to organize through a simple contract between partners, offering unlimited liability that provides reliability for creditors, and allowing combined personal credit of partners to better obtain additional capital. Partnerships also benefit from closer supervision of business activities through participation of multiple people, as well as incentives for close attention through direct gains for partners while retaining the personal element of individual partners.

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    ACCT 102

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    Advantages of a Partnership

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    A partnership has several advantages over a sole proprietorship including being easy and inexpensive to organize through a simple contract between partners, offering unlimited liability that provides reliability for creditors, and allowing combined personal credit of partners to better obtain additional capital. Partnerships also benefit from closer supervision of business activities through participation of multiple people, as well as incentives for close attention through direct gains for partners while retaining the personal element of individual partners.

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    954 views1 page

    Advantages of A Partnership

    Uploaded by

    April Naida
    A partnership has several advantages over a sole proprietorship including being easy and inexpensive to organize through a simple contract between partners, offering unlimited liability that provides reliability for creditors, and allowing combined personal credit of partners to better obtain additional capital. Partnerships also benefit from closer supervision of business activities through participation of multiple people, as well as incentives for close attention through direct gains for partners while retaining the personal element of individual partners.

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    © All Rights Reserved
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    ADVANTAGES OF A PARTNERSHIP

    1. It is easy and inexpensive to organize, as it is formed by a simple contract between two or


    more persons.
    2. The unlimited liability of the partners makes it reliable from the point of view of creditors.
    3. The combined personal credit of the partners offers better opportunity for obtaining
    additional capital than does a sole proprietorship.
    4. The participation in the business by more than one person makes possible a closer
    supervision of all its activities.
    5. The direct gain to the partners is an incentive to give close attention to the business.
    6. The personal element in the characters of the partners is retained.

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